The thought may cross your mind of putting your vehicle in storage while you go on an extended vacation, head out on a long-term business trip, etc. Since you will not be using your vehicle for a period of time, you may wonder whether you can drop your auto insurance. Whatever the reason and for however long, canceling your insurance is never a good idea. Insurance Solutions Inc., serving Cullman, AL, shares a few drawbacks to dropping your auto insurance coverage.
Canceling Will Cause a Gap in Coverage
If you choose to cancel your insurance, a gap in coverage will be created. Unfortunately, this could deem you as a higher risk person to insure when you try to get insurance again.
Your Vehicle Will Not Be Protected Against Various Accidents
If you do not continue to carry auto insurance on your vehicle, you will be 100 percent financially responsible for any damage that occurs to your automobile while it is in storage. So, let’s say you are storing your vehicle in the garage and a large tree falls on top of it during a storm, damaging the vehicle. Since you don’t have insurance coverage, you would need to pay out of your pocket for the auto repairs.
Canceling May Be a Violation of Your Insurance Policy Requirements
Depending on the stipulations outlined in your auto insurance policy or elsewhere, you may not have the option to cancel your coverage. For instance, if you are paying your vehicle off through a lender, it is likely a condition of your auto loan to have full coverage on the vehicle at all times, regardless of the circumstances.
If you plan to store your vehicle for an extended period of time, canceling your policy may not be the best choice. However, you do have options in most situations, such as reducing your coverage. For more information, contact our insurance agents at Insurance Solutions Inc., serving Cullman, AL.